Keeping it relevant, this is post in hand salary at Rippling for sde3. How would you invest this amount? My monthly expenses around 50k, so need strategy for investing 4L. I'm thinking about daily SIP of 15-20k, in 4 mf - Smallcap Midcap Bluechip Nasdaq index Is it good? Don't want to park all money on one day to avoid highs and lows. Also suggest any alternative strategies. Yoe 8 #india #investment
Depends on your goals and risk profile. I'd suggest go heavy on Mid and Small. Avoid Bluechip. Go heavy on stocks as well.
Why heavy on Mid and small? Whats the logic?
Bluechip ones are overweight. Look at the PEs. Even fund managers are finding it difficult to maintain returns of large caps. Is suggest OP to find some mid/small and invest heavily. You can't make wealth without risks otherwise everyone would be wealthy and rich. With 4L as his extra, I'd suggest go full ballistic with 1L at least, forget you ever had it.
Daily sip is not going to be much different from monthly, but if that makes you feel better - there's no downside except for 240*4 transactions very year. Also 100% equity? Have some debt as well. More importantly an emergency fund.
I've good debt and emergency portfolio
You can try US stocks investing via IND money or vested. Try mutual funds in India like pgims mid cap, mirae asset mid cap. Can search which one is doing better now on etmoney. I personally like Navi mutual funds they have very less expense ratio and less exit load. Try investing directly in blue chip stocks.
Makes sense. Now I want to avoid invest in us market(atleast till they get inflation under 5%)
Consult a fee only advisor. Atleast check r/IndiaInvestments on reddit and discord, freefincal.com if you're sure you want to do it yourself. Seeing that you decided 100% equity with no reasoning and daily sip tells me you don't really know what you're doing. You seem to have your priorities in reverse order, asset allocation comes first, start with https://www.capitalmind.in/2020/06/how-to-think-about-asset-allocation-in-india-part-1/
I didn't read daily SIP in OPs post. That's ridiculous. It could be a PITA when you do taxes and when you switch or redeem. Very valid point on paid advisor.
I've good debt and emergency portfolio. I know how market works(being in industry for 8+ years). I said daily sip to make sure I don't buy too high on say 3rd of every month. Its not ridiculous, I've read it somewhere. Thanks for advice though
I would add Debt, Gold, International funds too
I've good debt and emergency portfolio
I would consult a fee based/fee only financial advisor Their services are affordable too
Any recommended advisor?
https://freefincal.com/list-of-fee-only-financial-planners-in-india/
I would put majority in Nifty 50. And the rest in small cap, mid cap and some in liquid funds
How will you distribute?
I've good risk appetite. At peak my stocks were and some still 40% down
Why not in real estate? SWEs like us are always busy making small money while people with black money get ultra rich with residential and commercial real estate. Out of 4L invest something in commercial real estate in big 8 cities.
Investing in real estate does not make sense and I believe it won't bring more than 10% yoy returns
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Buy SGB, Invest in good MFs (based on risk appetite), build emergency fund, buy bonds etc. Btw what's your base salary?
Base around 85L